Gold extends the rebound, $ 1300 back on sight
Gold staged a solid rebound overnight and now extends the renewed upside back towards $ 1300 mark, in response to broad based US dollar correction after yesterday’s sharp U-turn on Trump’s victory.
Gold re-takes 200-DMA
Currently, Comex gold futures jump1% to 1287.20, hovering close to fresh session highs of $ 1288.75 reached in the last hour. The recovery in the yellow metal from $ 1270 region gained further traction over the last hour, as markets seek to take profits off the table after a volatile session witnessed yesterday, in wake of the US election results and Trump elected as the 45th President of the USA.
Moreover, markets now shifts their focus towards the US fundamentals and waning Dec Fed rate hike hopes, which also boosted the non-interest bearing gold. Bloomberg showed yesterday that Dec Fed rate hike bets dropped dramatically from around 80% to 42% post-Trump’s victory.
Looking ahead, all eyes remain on the US jobless claims, Fed speaks and consumer sentiment data due today and tomorrow for further momentum.
Comex Gold Technical Levels
The metal has an immediate resistance at 1300 (round figure) and 1311.05 (100-DMA). Meanwhile, the support stands at 1270 (Nov 9 low) below which doors could open for 1265 (key support).
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